Efficiency through a global coverage concept

Our client

Founded in Denmark in 1901 ISS A/S is one of the world’s leading facility services companies, with over 500,000 employees in 75 countries.

ISS has also been operating in the German market since 1960. Having supported the company’s successful initial public offering, Deutsche Bank also supports ISS to control its European cash management and offers flexible working capital solutions. This enables the company to mitigate the impact of longer client payment terms on its balance sheet.

The challenge

In Germany, leading facility services provider ISS faces longer payment terms from its clients. The resulting financing requirement is impacting its liquidity. The company was therefore looking for flexible working capital solutions that would have a positive impact on the balance sheet, risk and key liquidity figures. Furthermore, a successful restructuring of the German business resulted in a highly decentralised structure with ISS companies spread out across Germany. Effective cash management was therefore essential.

The solution

As part of the globally coordinated management of the ISS Group, there were intensive consultations with Deutsche Bank concerning the expansion of the cooperation in terms of working capital management and European cash management.

It was deemed that a flexible working capital solution could secure the liquidity required. For this purpose Deutsche Bank enabled ISS to participate in existing supplier finance programs of the bank’s global client base. ISS benefits in many ways from the fast and efficient integration in these programs. The decentralised cash management structure in Germany was improved by implementing centralised cash management and through intelligent incorporation into a European cash pool.

Following Deutsche Bank's global coverage concept for multinational corporations each solution was implemented in close coordination with the local ISS companies and ISS A/S. The implementation steps were agreed in an initial meeting where Deutsche Bank’s global client service team and all partners had regular exchange. The close cooperation enabled the fast and successful implementation of all projects.

The Process

Due to the different client payment runs, which impacted the liquidity inflows, the solution had a particular focus on the flexibility required. Supplier finance as a form of working capital management provides the opportunity to prefinance extended payment terms via a bank. ISS achieved the required liquidity through its connection to Deutsche Bank’s existing supplier finance programs.

While buyers profit from extended payment terms, such programs improve the liquidity planning of suppliers. Depending on liquidity requirements, suppliers can flexibly decide which receivables will be pre-financed by Deutsche Bank. The control of the liquidity achieved has been optimised through the implementation of central cash management.

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